Lundbeck restructures, with 600 job cuts anticipated

Denmark-based CNS specialist Lundbeck (LUN: CO) last week announced plans to restructure its commercial organizations in Europe resulting in the reduction of around 600 positions, mainly in Europe. The cuts come at a time when the firm’s key antidepressant Cipralex (escitalopram) – sold in the USA as Lexapro by Forest Laboratories - has lost its patent protection.

The proposed restructuring is intended to pave the way for a successful transition of Lundbeck's European product portfolio with several potential product launches in the coming years. Furthermore, the initiative aims to mitigate increased pressure from healthcare reforms, generic competition and uncertainty regarding pricing and reimbursement in Europe. Lundbeck will continue with the current plans for investments in markets of growth comprising the US and International Markets.

"The market environment in Europe is changing rapidly at a time when Lundbeck has numerous new products to launch. To ensure a successful transition of our product portfolio in Europe we need a more flexible commercial infrastructure and to maintain cost control," says Ulf Wiinberg, president and chief executive of Lundbeck.